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Choosing an innovation model

What creates the need for an innovation model? For most

businesses, it is the need for growth. The long term expectation

for mature companies is organic growth of 4 to 6 percent,generated by the need to provide a reasonable return toshareholders. For smaller companies, growth demands can be

significantly higher.

Effective innovation provides the solution to meeting this growthdemand. An innovation modelprovides the conceptual framework for identifying and advancing

the change ideas most likely to generate the value needed to create sustained growth.

The familiar Linear Innovation Model

A paper by Benoit Godin (Godin, 2005) provides a historical discussion of the Linear InnovationModel. He suggests that the source remains unclear, but he offers an initial early reference from

1945. The model is ultimately summarized with the following steps:

Basic researchApplied researchDevelopment(Production and) Diffusion.

Godin also presents a time-based taxonomy, suggesting how this model has developed over time.

The Linear model emphasizes scientific advance over contributions that come from players later

in the process, leading to a key source of criticism. The continuity of use for this model, despite

much opposition, is partially attributed to its simplicity. More importantly, the statistics availablebased on the linear model, or lack of statistics for alternative models, may be delaying change to

other innovation framework options.

Characteristics to look for in an innovation model

A model attempts to provide a representation that can help us understand how things work. Some

attributes to consider for a model of innovation include:

Simplicity- Is the model easy to understand and use?

Descriptive- Is there sufficient detail to enable explanation, comparison, and/or

imitation (use)?

Assessable- Does the model enable measurement and provide a vehicle for evaluating

alternatives? Predictive- When model assumptions are true, does the model provide probabilities for

described outcomes?

Timely- Does the model provide assessments, measurements, and insights that enable

innovation opportunities in a timeframe that will lead to success?

The timeliness element for an innovation model can be particularly challenging. Innovation

requires decisions for change which are often resisted, particularly when changes may

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cannibalize current business. A good model will provide the information, insight, and needed

motivation for internal change before external changes can disrupt the company.

Premature change can also be ineffective if environmental conditions are not ready to support the

change being promoted. An effective model will detect environmental readiness for change

adoption, enabling acceptable returns for innovation investments.

Other innovation models

Innovation research has generated additionalmodels that attempt to address deficiencies seen

in the linear model. Sources of ideas that can

generate value have been broadened, recognizingthat some highly successful innovations have not

been the direct result of application of scientific

or technology advances.

Variations of the linear model have been

developed that include:

Technology push- This has a small change from the linear model where marketing and

sales is added after production.

Market pull- This variant suggests that research and development is responding to a

market need, resulting in this modification to the earlier model:

Market NeedDevelopmentProductionSales.

The Phase Gate Model- This modifies the linear model by recognizing that there are

feedback loops and time variations between steps, and establishes readiness criteria for

moving between major phases of innovation development. Phase Gate approaches areoften represented by a funnel.

In the 1980's, Proctor and Gamble developed the "Connect and Develop" model to address theincreasing costs of keeping all research and development within the company, representing an

example of open innovation. In this model, parts of research and development come from outsidethe company as a result of networking and

partnerships.

Recent models, such as those by promoted by

Everett Rogers and Geoffrey Moore, have tended

to focus on elements of adoption. The "Diffusionof Innovations" from Rogers focuses on

psychological profiles that characterize adopters

at various stages of an innovation adoption cycle,enabling a focus on market innovation. Moore's

focus on the technology adoption lifecycle points

to where innovation is more likely to be effectivegiven the current state of a specific product or

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service level of acceptance.

Approaches coming from innovation research, such as Actor-Network theory and Social Shapingof Technology, have led a broader picture of how innovation works. This has led to new types of

innovationsuch as user innovation. Models are attempting to address change discontinuities that

can disrupt companies and create paradigm shifts. This innovation research can become quitecomplex, entering areas of philosophy, such as epistemology, the theory of knowledge.

Advantages of finding the right innovation model

Detecting the need for change, or finding new places to generate growth can present significant

challenges for any company or organization. Having an innovation model that facilitates and

promotes understanding of how things change could make the difference for the long term

survival of the business. An effective model:

Provides a conceptual framework and promotes innovation thought

Aids faster identification of new sources of innovation Facilitates better timing for market introduction

Helps find innovation opportunities aligned with timeframes needed for the business

Reduces likelihood of competitive disruption

Increases return on innovation investment

Improves ability to anticipate needed innovation

Sustains competitive advantage and enables long term growth

In summary, an innovation model could be a key element for creating competitive advantage and

is critical for sustained growth in today's business environment.

References:

Godin, Benoit. "The Linear Model of Innovation: The Historical Construction of an Analytical

Framework." (2005). Retrieved Oct 12, 2011, from http://www.csiic.ca/PDF/Godin_30.pdf